Here’s a brief breakdown of what the code is doing:
Inputs for SMA:
You define an input for the length of the Simple Moving Average (sma_length) with a default of 5.
Inputs for Supertrend:
ATR length (supertrend_atr_length) is set to 10.
Multiplier (supertrend_multiplier) is set to 3.
SMA Calculation:
The SMA is calculated using the ta.sma function with the closing prices over the specified length.
Supertrend Calculation:
The ta.supertrend function calculates the Supertrend and its direction (positive or negative).
Plotting:
You plot the SMA on the chart with the plot function, using the color blue.
The Supertrend is also plotted with a color that changes based on the direction. Green for an uptrend (direction > 0) and red for a downtrend (direction <= 0).
Background Color:
The background color is dynamically set to green or red based on the trend direction (Supertrend), with a transparency of 90% to give a subtle indication of the current market condition.
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